Weinstein: Saba’s trust campaigns unlocked £600m

Boaz Weinstein told investors that Saba Capital’s activist campaigns against UK-listed investment trusts have generated more than £600m in gains for shareholders by forcing board, management and strategy changes at trusts trading at persistent discounts to net asset value.

Saba has invested more than £2bn across about 50 London-listed companies, with the majority of its stakes in investment trusts. The campaign began in late 2024 and concentrated on trusts that consistently traded below the value of their underlying assets. Weinstein said the £600m total reflects outcomes at 12 trusts where Saba succeeded in pressing for change and that the benefits reached retail holders and pension funds as well as Saba’s investors.

The fund has used interventions including nominating directors, pressing for new management arrangements and altering investment strategies. Several cases led to boardroom contests and shareholder votes. Saba typically builds stakes close to 30%, below the threshold that would trigger a mandatory takeover offer, before seeking investor support.

Saba’s current target is Baillie Gifford US Growth, an about £1bn trust whose holdings include stakes in private companies such as SpaceX and Stripe. Shareholders are due to vote later this month on proposals to appoint three Saba-nominated directors to the board.

Examples cited by Saba include the election of three Saba-backed directors to Edinburgh Worldwide in April; a tender offer at Herald Investment Trust that allowed Saba to exit while Aberdeen was appointed investment manager; and structural changes at Smithson Investment Trust after Saba became a significant shareholder.

Saba has expanded into the property sector, building positions in companies such as Workspace and Grainger. Weinstein added that the campaigns have prompted other trusts to take independent action to narrow discounts, which he said could increase returns for holders across the market.

Weinstein estimated managers at affected trusts forfeited about £26m in fees, which he described as effectively redirected to investors. Some investment trust boards criticised Saba’s tactics and reported difficulties engaging with the firm, raising concerns about the size and pace of stake building and the pressure placed on trustees and managers during contests for control.

Weinstein rejected claims that Saba exploits low shareholder turnout, saying shareholders are free to vote. He confirmed the firm intends to continue pressing UK investment trusts where it sees value that can be realised.